START-UP BUSINESS PLAN PROPOSAL FOR 2023

COMPANY ADRESS
www.plastileco.co.tz

LOCATION:
GOBA KIMARA ROAD
COMPANY ADRESS:

www.plastile.co.tz
plastileco@gmail.com
COMPANY OWNERS:
KIMARIO DOREENNEEMA V.
ABDUL ABDALLA
MOSHA ANGELAYEYOO J.
COMPANY INFORMATION
Name of the company; PlasTile COMPANY
Name of the owners; Doreenneema Kimario
Abdul Abdalla
Angelayeyoo Mosha
Company address; P.O. BOX 3800, DAR ES SALAAM
Email; plastileco@gmail.com
Telephone; +255 788 551857
+255 743 999149
Type of company; Limited Company
Company mission; To create flexible plastic tiles from waste disposable plastics.
Company vision; To become a leading plastic tile company that will ensure low-cost
maintenance in buildings.

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TABLE OF CONTENTS
CONFIDENTIALITY AGREEMENT ................................................................................................... 6

..................................................................................................................... 7
EXECUTIVE SUMMARY .................................................................................................................... 7
SECTION ONE; ..................................................................................................................................... 8
ECONOMICAL AND MARKETING ANALYSIS............................................................................... 8
SECTION TWO ................................................................................................................................... 14
PRODUCTION AND OPERATION ANALYSIS ............................................................................... 14
2. Building location ................................................................................................................... 14
Reasons for site selection .............................................................................................................. 14
2.1. Manufacturing process ...................................................................................................... 15
Step2; melting of the plastic bottles .............................................................................................. 16
Step3; compaction of the melted plastics ...................................................................................... 18
Step4; finishing sizes and ornamentation...................................................................................... 18
Step5; packaging ........................................................................................................................... 19
2.2. Buildings and other structures........................................................................................... 19
2.3. Machinery and equipment................................................................................................. 20
2.4. Direct operating cost ......................................................................................................... 21
Raw materials ............................................................................................................................... 21
Direct labor ................................................................................................................................... 22
Factory overhead........................................................................................................................... 23
SECTION THREE ................................................................................................................................ 24
ORGANIZATION AND MANAGEMENT ANALYSIS .................................................................... 24
3.1. Business name and logo ......................................................................................................... 24
3.2. Story of the business .............................................................................................................. 24
3.3. Bio data of the entrepreneur ................................................................................................... 25
3.4. Organization structure ............................................................................................................ 26
3.5. Salaries of top management staff. .......................................................................................... 27
3.6. Office supplies. ...................................................................................................................... 28
3.7. Activities before operation. .................................................................................................... 28
3.8. Indirect operating expenses.................................................................................................... 29

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 ...................................................................................................................................... 30
SECTION FOUR .................................................................................................................................. 30
FINANCIAL STATEMENT ANALYSIS............................................................................................ 30
Finance; ......................................................................................................................................... 30
4.1 Investment plan statement....................................................................................................... 30
4.11 Equity is categorized into;..................................................................................................... 30
4.12 Production and product price; ............................................................................................... 30
4.13 Receivables ........................................................................................................................... 31
4.2 Profit and loss statement ......................................................................................................... 31
4.3 Cashflow statement ................................................................................................................. 31
4.4. Balance sheet ......................................................................................................................... 31

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LIST OF FIGURES
FIGURE 1.SITE LOCATION ............................................................................................................................................... 9
FIGURE 2.TYPES OF DIGITAL MARKETING ................................................................................................................... 11
FIGURE 3. A LIST OF THE SOCIAL MEDIAS USED BY THE COMPANY........................................................................... 12
FIGURE 4. HOW THE PROCESS OF AFFILIATE MARKETING WILL BE PRACTICED ......................................................... 13
FIGURE 5.MAP OF THE SITE LOCATION FOR THE PROPOSED BUSINESS ..................................................................... 14
FIGURE 6. PROPOSED BUSINESS SITE LOCATION AND ITS BOUNDARIES .................................................................... 14
FIGURE 7. PLASTIC BOTTLE COLLECTION .................................................................................................................... 16
FIGURE 8. MANUAL COMPACTION OF THE PLASTIC BOTTLES ................................................................................... 16
FIGURE 9. PLASTIC MELTING MACHINE ...................................................................................................................... 17
FIGURE 10. PLASTIC MELTING PROCESS..................................................................................................................... 17
FIGURE 11. MOLTEN PLASTIC COMPACTOR MACHINE .............................................................................................. 18
FIGURE 12. FLEXIBLE FLOOR PLASTIC TILES ................................................................................................................ 18
FIGURE 13. FLEXIBLE WALL PLASTIC TILES AND DECORATED ..................................................................................... 18
FIGURE 14. ORNAMENTED PLASTIC TILES PAVEMENTS ............................................................................................. 19
FIGURE 15. SITE ZONING ............................................................................................................................................ 20
FIGURE 16. CERAMIC TILES DEFECT WHICH MAY LEADS TO HUMAN INJURIES ......................................................... 25
FIGURE 17. PLASTIC TILES AS SOLUTION TO THE DEFICIENCY OF CERAMIC TILES...................................................... 25
FIGURE 18. PARTICIPATING IN COMMUNITY SERVICE TO CONSERVE ENVIRONMENT AS THE DRIVING FORCE OF THE
PROJECT .............................................................................................................................................................. 26

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LIST OF TABLES
TABLE 1. DEMAND FORECAST TABULAR FORMAT ..................................................................................................... 10
TABLE 2. SALES FORECAST TABULAR FORMAT ........................................................................................................... 10
TABLE 3.COST PRICE ITEMS FOR THE BUSINESS LOCATION ........................................................................................ 15
TABLE 4. COST PRICING FOR BUILDING AND OTHER STRUCTURE .............................................................................. 20
TABLE 5. COST PRICING FOR MACHINERY AND EQUIPMENT ..................................................................................... 20
TABLE 6. OFFICE EQUIPMENT COST PRICE ................................................................................................................. 21
TABLE 7. RAW MATERIAL COST PRICE ........................................................................................................................ 21
TABLE 8. DIRECT LABOR COST PRICE .......................................................................................................................... 22
TABLE 9 ...................................................................................................................................... 22
TABLE 10. COST PRICING FOR FACTORY OVERHEAD.................................................................................................. 23
TABLE 11.SHOWS EXPENDITURES OF TOP MANAGEMENT OF THE COMPANY .......................................................... 27
TABLE 12; SHOWS OTHER SALARIES OF OTHER POSITIONS IN SPECIFIC SECTORS OF THE COMPANY....................... 27
TABLE 13. SHOWS EXPENDITURES CONCERNED WITH ALL OFFICE SUPPLIES ............................................................ 28
TABLE 14.GANTT CHART TIME PERIOD ...................................................................................................................... 28
TABLE 15.SHOWING A LIST OF INDIRECT OPERATING EXPENSES ............................................................................... 29

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 CONFIDENTIALITY AGREEMENT
The asigned reader acknoledges that this information provided by PlasTile
COMPANY in this business plan is confidential to the shareholders themselves
the information within should not be shared to the outsider without the consent
to the shareholders of the company.
This information that is confidentials includes but not limited to;
1. Business plan idea generation
2. Finacial statement disclosure
3. Production and operation techniques
4. Marketing techniques
5. Specifications, drawings, sketches, and model.

PT Co.LTD
Signature
PlasTile Company LTD
Name
May 2022.
Date and time.

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 EXECUTIVE SUMMARY
PlasTile Company limited is an organization designed to create plastic tiles from disposable
plastic wastes specifically plastic bottles, with the aim of reducing the undecomposed plastic
in the environment and creating a sustainable product from these plastic wastes. Also, the
product has to ensure the flexibility that will correspond to the nature of design in terms of
the climatic condition for which this product will be subjected to.
The aim of this company is to deliver products across the region of Dar es salaam specifically
but not limited to institutional organizations and middle-income group at an affordable price.
The diagram below illustrates the general process of the production of plastic tiles;

COLLECTION OF PLASTIC WASTES

MELTING OF THE PLASTICS

COMPACTION OF THE MELTED PLASTIC

FINISHINGS-SIZES AND ORNAMENTATION

PACKAGING

ABOUT THE COMPANY OWNERS

The company is owned by three shareholders namely Doreenneema Kimario, Abdul Abdallah
and Angelayeyoo Mosha. Because of the ongoing emphasis of the green infrastructure
replacing the grey infrastructure. These owners so the potentiality of the use of the disposable
waste plastics to create a flexible plastic tile that will replace the present ceramic tiles for the
purpose of solving the maintenance costs caused by the defects of ceramic tiles posed by the
weather changing factors.
PROJECT CONTRIBUTION TO THE ECONOMY
The manufacturing of plastic tiles will not only contribute to the environment of the state but
also it will help in minimizing cost of maintenance of building floors and walls that are
ceramic tile finished, plastic tiles will offer durability and strength to the harsh climatic
conditions that retards the building outlook.

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 SECTION ONE;

ECONOMICAL AND MARKETING ANALYSIS

1.1. Product description

The product PlasTile is an alternative to the commonly used ceramic tiles. This product has
high resistance to scratches on the surface, easy to clean stains, resistance to bad weather and
climate variation, the PlasTiles are not porous and 100% water tight. The risk of cracks due to
severe changes in temperature is reduced hence makes it durable. They are light weight easily
to assemble and affordable. The product is not fragile.
Product name; DANA TILES
Product dimensions; this product falls on the wants and demand of people because first
people desire to have last long and durable floor finishing and the product will cater for the
desire of the target group.
The task utility for this designed object will be to bring a solution to the occurring defects
that is caused by the ceramic tiles.
The right timing for this product is at this era because technology has improved likewise on
the income level of people so a lot of people have adopted in construction using ceramic floor
finishing for pleasant looking.

1.2. Comparison of services with other competitors

The quality of services offered by others is categorized into several things

• The size; it should be perfectly square or rectangular, the dimensions errors

should not exceed 1mm in length and 3mm in thickness.
• It should have uniform color and texture.
• It should be firm enough to resist breaking and cracking.
• Edges should be sharp and perfectly at right angle and not broken at corner.
• Water absorption of ceramic tiles should not exceed 10% of its dry weight
• It should be free from cracks, depression, holes, specks, spots and cavities and
should be scratch resistance.
The quality of services that DANA TILES will offer includes the following;

• The product will offer flexible shapes of geometry so that to fit in different
designs made.

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 • The transparent nature of plastic materials makes it easier in color differences
which will create themes of variety colors in a space.
• The product can be made with different texture depending on the requirements
of the purchasing user.
• Plastic tile is not porous product, it is 100% water tight.
• Plastic tiles is free from crack, depression, holes, spots and cavities unlike
ceramic tiles that are not 100% effective.
1.3. Business location

The plastic tile product needs to be allocated at Dodoma and Dar es Salaam (near areas that
undergo construction) like Goba and Kigamboni because of the following:

• In Kigamboni, there is high water table therefore due to the increased

construction and technology there is a need of such plastic product due to the
qualities described above.
• In Goba, there is a high increase of settlement and population with relation to
the income level thus there is high demand in such product for construction.

Figure 1.Site location

1.4. Market area/Customers location

Regarding to the ongoing construction happening in defined areas above such as
residential, commercial, mixed-use buildings, public buildings in this case the
potential buyers are middle and high classes income people.
Reasons for choice of customers
From the above explanations the involved potential buyers are likely subjected to
large scale projects that requires durability of materials and as explained earlier plastic
tiles will offer this durable essence that is demanded for the customers.
1.5. Main customers
Our designed potential customers are both individuals and as well as institutions to be
able to increase sales product due to the types of projects they undertake.

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 The behavior of the designed customers is that they would want their projects to be
durable with accordance to the nature of the product described above, these customers
would opt for such products.

1.6. Total demand

The estimated population of our designed customers is a population of about 500000
people.
We target about 75% of our population to buy the product therefore the targeted
population will be;
; 75% * 500,000=375,000 people
Therefore, the number of the potential buyers is about 375,000 people.
1.7. Demand forecast
From the estimated number of potential buyers our usage rate is approximately
designed to be 20% due to the qualities mentioned in product description. Therefore,
our usage rate analysis for five years will be as follows:
Table 1. Demand forecast tabular format

Product Yearly increment Potential

in Usage rate (%) buyers
Year 1 Year 2 Year 3 Year 4 Year 5

DANA 20% 375,000 450,000 540,000 648,000 777,600

tiles

1.8. Selling price

Ceramic tiles price is 3,000 to 8,000 Tanzanian shillings.
The selling price of our product is estimated to range from 6000 to 14,000 Tanzanian
shillings per square meters, by using comparative method. And the expected profit
growth is about 30% per year.

1.9. Sale forecast

Since estimated number of potential buyers is 375,000. The estimated percentage for
the projected market size will be 70%. And the estimated total market size quantity
for five years will be as follows;
Table 2. Sales forecast tabular format

Years Number of Potential

customers by 70%
Year 1 375,000
Year 2 637,500
Year 3 1,083,750
Year 4 1,842,375
Year 5 3,132,037

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1.10. Sales strategies
Our product is expected to be delivered in 4 ways which are;
• Direct selling to the customers
• By using the wholesaler’s market
• Retailers
The above modes of delivery are selected because of the easiness to reach the
customers and the magnitude of the buyers is large, therefore there is a need to have
many channels to reach the customers.

1.11. Marketing strategies/promotional measures

The marketing sales strategies is visualized in the following ways;

• Product strategy; quality product

• Pricing strategy; less expensive and affordable
• Promotion strategy; -free delivery to permanent buyers
-use of billboards
-television and radio advertisement
1.12. Marketing budget

The estimated budget in a year is about 50,000,000 Tanzanian shillings which will
cover for:
• Transportation of raw materials and final products
• Advertisement of the product
• Salary
• Security

1.13. Digital marketing

Figure 2.types of digital marketing

With the digital platform we’ll be able to spread the word of our goods and services to the
audience to be able to know what we’re selling, for what prices, and mode for delivery to the
respective site.
Digital marketing is divided in various aspects that as entrepreneurs are able to work with,
and these includes;

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Content marketing; here it will involve us creating blogs, videos, infographics to give a
general information on the production pf Plastic tiles, how we make them, their impact on
both the environment and humans as well, that,
Search engines Optimization; in this context, a website will be created containing all kinds
of information of the product in terms of quality, advantages of it over others, address to
where it can be found, the flexibility of the customers to their liking. This website, will strive
to be ranking high on the list of search engine to maximize the number of visitors to the
particular website.
Our company’s website includes; www.plastileco.co.tz
Pay-per check; also, creating ads that will be showcased when people use digital platform
like you-tube, face-book, and google. The main idea is that people get to see the kind of
business we’re doing to provide for the people.
The ads that we target area to be displayed on the frequently used Medias example; audio
marks, YouTube, boom play, Spotify
All the above links are frequently used by people therefore as a means of advertising it will
be a good starting point to advertise our products.
Social Media; this is a powerful way for business of all sizes to showcase what they do.
Using social will really help to show and keep the trust of the people in terms of
communication (we’ll be available 24/7 with the use of an automatic response for known
questions about prices, location, delivery etc.)

Figure 3. A list of the social Medias used by the company

For our company the above social media will be used to communicate and acting as a link of
communication between the customers and the owners;
Facebook and Instagram user name is; PlasTilecompany
LinkedIn and twitter user name is; PlasTilecompay
WhatsApp communicative number includes; +255 743 999149
Email marketing; from the website created visitors that will access will get the opportunity
to receive email newsletter for updates on the product.
Affiliate; here to be able to continually reach further of an audience, we’ll introduce a third
party that will have the ability to advertise the business to a multitude of people.

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Figure 4. How the process of affiliate marketing will be practiced

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 SECTION TWO

PRODUCTION AND OPERATION ANALYSIS

2. Building location
The land value is estimated to be of 70,000,000tshs value
The proposed business is to be located in areas that are;
• Closer to the customers
• Access of raw materials
The below ma shows the location of the proposed enterprise

Figure 5.Map of the site location for the proposed business

Figure 6. Proposed business site location and its boundaries

Reasons for site selection

• Proximity to the raw materials

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 • Availability of the potential customers
• Availability of infrastructure
• Availability of the market

Table 3.cost price items for the business location

S/N ITEMS AMOUNT

1 Landscaping and pavement installation To be priced in building and other
structures
2 Access road construction 10,000,000
3 Drainage system installation To be priced in building and other
structures
4 Waste disposal systems and fees 50,000 per month
5 Physical improvements and land clearing 1,000,000
6 Unpaid real estate taxes 500,000
7 Registration of land titles 500,000
TOTAL 12,050,000

2.1. Manufacturing process

The plastic tiles will be manufactured from the plastic waste bottles materials.

COLLECTION OF PLASTIC WASTES

MELTING OF THE PLASTICS

COMPACTION OF THE MELTED PLASTIC

FINISHINGS-SIZES AND ORNAMENTATION

PACKAGING

Step1; collection of plastic wastes

It is the initial stage in the product production it involves the collection of plastic wastes from
different areas and transporting them to the industry for them to be processed, at this stage
materials to be used will include the plastic bottles, sacks for collection of those plastic
bottles and a means of transportation from the collection points to the industry.

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 Figure 7. Plastic bottle collection

Figure 8. Manual compaction of the plastic bottles

Step2; melting of the plastic bottles

After the collection of these plastic wastes then the bottles needs to be compacted into slim
shapes and it will subjected to a machine that will melt the plastic wastes into molten mate
ready for the next step.

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Figure 9. Plastic melting machine

Figure 10. Plastic melting process

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Step3; compaction of the melted plastics
The molten mate will be placed into different desirable tile designed shapes and then be
compaction of these molten mate with decorative details on the surface of the plastic tiles.

Figure 11. Molten plastic compactor machine

Step4; finishing sizes and ornamentation

Before the hardening of the compacted mate, while it is still in its molten hardening form the
plastic tile is then required to be adjusted into different sizes and shapes adding
ornamentation and coloring of the tile surfaces.

Figure 12. Flexible floor plastic tiles

Figure 13. Flexible wall plastic tiles and decorated

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 Figure 14. Ornamented plastic tiles pavements

Step5; packaging
The plastic tiles will be packed in accordance to the following criterial
• Size
• Colors
• Quality
The above reasons will influence on how our packaging of the tiles will be subjected;
The tiles that have the same size will be grouped together while those of the same color will
be packed together. The quality of the tile also will vary from high quality to low quality and
therefore this will also encourage the means of packaging these tiles too.

2.2. Buildings and other structures

The total spatial configuration of the space requires the following other structures to be built
on the land near the production plant, these structures includes but not limited to the
following;
• Power supply area
• Storage area for the waste materials and the finished products
• Parking spaces for transportation trucks
• Waste deposition area
• Administration block
• Other department blocks
• Shop warehouse
The below map shows the zoning of these spaces that will be required in production process;

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 Figure 15. Site zoning

Table 4. Cost pricing for building and other structure

S/N ITEMS AMOUNT (TSHS)

1 Building permit cost 1,000,000
2 System installations 10,000,000
3 Provision of yard, parking and storage areas 15,000,000
4 Pollution installation system 20,000,000
TOTAL 46,000,000

2.3. Machinery and equipment

The production of the plastic tiles will also involve the machines and equipment that will be
costing different in different production field; therefore, we have categorized these tools in
different three zones;
Zone1; tools in the production plant, which will involve; compaction machine, melting
machine, ornamentation machine and packaging machine.
Zone2; tools in the administration areas will include all the office equipment and stationeries.
Zone3; includes all the tools that without them the operation process will be difficult and this
includes the following, transformer in case there is power shortage, water motor for pumping
water to required places with its water reservoir and ICT and security machines example the
cameras and safety detectors.
Table 5. Cost pricing for machinery and equipment

S/N ITEMS AMOUNT (TSHS)

1 Foundation cost To be compensated in construction details
2 Procurement cost Dependinding on contract agreements
3 Transportation cost 100,000
4 Warehousing cost 250,000
5 Insurance cost 175,000
6 Installation cost 1,500,000

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 7 Warranty cost 500,000
8 Testing and adaptation 1,000,000
cost
TOTAL 3,525,000

Table 6. Office equipment cost price

S/N ITEM SOURCE AMOUNT (TSHS)

1 Office furniture Lufungira carpenters 2,750,000
2 Telephone system TTCL 150,000
3 Mobile phone Samsung 500,000
4 Network and internet connection Little more 1,500,000
5 Multifunction printer Little more 500,000
6 White board Little more 50,000
7 Coffee machine Little more 75,000
8 Business cards Digital stationery 200,000
TOTAL 5,725,000

2.4. Direct operating cost

This part of production analysis will analyze all the cost items that directly are involved in
production of the product from collection of the materials to the delivering of the finished
product to the customer.
This items includes;
• Raw materials
• Direct labor
• Factory overhead

Raw materials
Table 7. Raw material cost price

S/N ITEMS QUANTITY SOURCE COST (TSHS)

1 Plastic wastes/bottles 10,000 Waste pits from 2000 per day for 20
different areas people
2 Packaging materials 5000 Digital 50,000 for A0 box
stationery
3 Labels 5000 Company office 20,000
4 Waste and other 1000 Finished 5000 @
defects products
5 Repairs and reruns 500 Finished 10,000@
products
6 Ordering cost 500 per day Customers 10,000 – 60,000
depending on distance
7 Storage cost 5000 Finished product 10,000 per day

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 TOTAL 185,000

The percentage of materials to the overall price of the product is;

Given the price for the plastic tile to be 8400TSHS and the total price for raw materials is
185,000TSHS
Therefore, (185,000/8400) * 100% = 22%
The percentage of materials to the overall price of the product is 22%

By considering the production volume from the sales forecast. The estimated annual raw
materials is given by;
The annual sales forecast percentage is 70%
The number of customers is 375,000 people
The estimated annual customer increment for the sales will be; 262,000 people
; 70%* 185,000 = 129,000tshs
The estimated annual raw materials will be 129,000tshs

Direct labor
In laboring criteria we check on those laborers who directly touch the raw materials and
convert it to finished product the following are the items that will be included in the cost
operation for direct labor within the enterprise.
These labors are grouped in several parts as follows;
• Plastic waste collectors
• Plastic waste transporters to the industry
• Manufacturing process labors; from melting to packaging and delivering of the
product
• Finished product transporters from the ware house to the customers

Table 8. Direct labor cost price

S/N POSITION SKILLS

1 Plastic waste collectors Any level of knowledge
2 Plastic waste transporters Any skills but driving skills
will be apprehended first
3 Manufacturing process labors Manufacturing and
industrial skills
4 Finished product transporters Any skills but driving skills
will be apprehended

Table 9

S/N COST ITEM AMOUNT

1 Wages 150,000 per month
2 Medical insurance 50,400 per month
3 Parastatal pension funds 250,000 per month

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 4 Sick leave Compensated to the medical insurance
5 Noncompulsory insurance 150,000 per month
6 Annual leave 500,000
7 Cost of holiday 200,000
8 13 month pay 100,000
9 Maternity leaves 250,000
10 Emergency medical allowances 150,000
11 Transport allowances 5000 per day
12 Food allowances 7000 per day
TOTAL 1,812,400

Factory overhead
Within this part we focus on the factory operation necessities to produce the finished product
for without them the production of the proposed product can be difficult, these factory
overheads includes the following items and their cost of running;

Table 10. Cost pricing for factory overhead

S/N ITEMS AMOUNT

1 Machinery repair and maintenance cost 5,000,000
2 Telephone 1,000,000
3 Electricity 1,000,000
4 Water 1,000,000 per month
5 Kerosene, gas and etc. 5,000,000 per month
6 Oil, grease and lubricants To be compensated in
machinery repair
7 Fire equipment and insurance 1,000,000 per month
8 First aid medicine kit Medical dispensary to be built
9 Pollution control measures Waste plant construction
10 Garbage disposal To be compensated in waste
system
11 Security systems 5,000,000 per month
12 Contribution to village and community Job opportunity provision and
development plastic waste collection

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 SECTION THREE

ORGANIZATION AND MANAGEMENT ANALYSIS

3.1. Business name and logo
The business of our company is; PlasTile Company Limited, the name is derived from two
words plastics and tiles. This is because of the sole reason of trying to make plastic tiles that
will be an alternative to the exiting ceramic tiles.
The proposed business logo for the company is;

PT stands for; Plastic Tiles

The slogan of the company is; Your Plastic Home
The aim of the establishing this company is to manufacture plastic tiles from disposable
plastic bottles so as to reduce the effects of plastic wastes to the environment.

The sign proposed of the company indicates the recycling objective

of the waste plastic to usable finished product.

3.2. Story of the business

This business was conceived after the observations and complains from majority people on
the defects of ceramic tiles caused by the weather condition changes, this defects leads to
accident and injuries. The fragility and inflexibility of these tiles made us come up with an
alternative thought for these tiles. Therefore a study on the plastic tiles was a reasonable
solution to the existing problem that is a challenge to many tiles in the market.

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Despite the conflict market we don’t wish to give up on this business because we think and
visualize that it the platform of the solution to the daily challenges caused by the existing
products

Figure 16. Ceramic tiles defect which may leads to human injuries

Figure 17. Plastic tiles as solution to the deficiency of ceramic tiles

3.3. Bio data of the entrepreneur

As architects with knowledge on building materials and seeking to attain sustainability in designs, one
of the focus is on the materials that people fell as they’ll be walking on the floors of the building
they’re in.
The founders of this business are generally hardworking and reliable, as we made good connections
with the people in-charge of the waste collected in most areas that have more plastic waste that
includes; university areas (where we got the skills), office areas, shop areas, and plastic bottles
collected along the road that people throw.
On our spare time, we spent reading books like Sustainability in tropic climates, journals on climate
changes trends, social behavior of people (sociology).

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 Figure 18. Participating in community service to conserve environment as the driving force of the project.

3.4. Organization structure

The business will form LIMITED COMPANY with potential shareholder(s), that is, Estim
Construction, M&M Architects to increase platform of recognition in the construction industry and as
part of the board of directors. The founders as managers as well taking charge of the production of the
plastic tiles, checking sales and knowing the market situation, profit and loses, as well as designing
the plastic tiles from the knowledge of design acquired under training.

SHAREHOLDERS

BOARD OF
DIRECTORS

PRODUCTION SALES FINANCIAL DESIGN

MANAGER MANAGER MANAGER MANAGER

Manufacturing Production Customer Display Credit Inventory Designer

workshops office Service and manager manager
manager promotion
manager

Legal personality of the company

The business proposal operates under private limited company. Whereby the group CEO at
the top level is the company owners and the shareholders.
The company will be expected to pay tax from any profit earned and the remained profit to be
distributed to the dividends.

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Why choosing limited company as a legal personality of the business?
This is because:
• Limited company is easier to raise capital, due to the nature of the proposed business
operation, capital required to run the business is huge because of the requirements that
were explained above.
• The business is likely to continue even when one member of the shareholders die,
unlike when the business was to be sole proprietary
• It is a limited liability where the shareholders will be protected from any risks (debts
or liabilities) associated within the business. Which means if the company fails the
investors will be protected by the rules of a limited liability.

3.5. Salaries of top management staff.

Table 11.shows expenditures of top management of the company.

S/N ESTIMATED EXPENDITURE MONTHLY

1 House Rent/ Payments 1,200,000
2 Electricity 100,000
3 Water 30,000
4 Communications and Telephones 50,000
5 Food, general housekeeping expenses 500,000
6 Clothing 1,000,000
7 Personal insurance 500,000
8 Schooling of children 3,000,000
9 Children's expenditure and presents 200,000
10 Entertainment and videos 500,000
11 Servants 100,000
12 Transports 100,000
13 Subscriptions to newspapers, etc. Other 50,000
14 Medical Expenses 1,000,000
15 Savings plans 1,000,000
16 Recurring Payments: 500,000
TOTAL - EXPENDITURE 9,830,000

Other salaries.
Table 12; shows other salaries of other positions in specific sectors of the company.

S/N POSITIONS NUMBER MONTHLY TOTAL SALARY

1 Sales manager 2 2,500,000 5,000,000
2 Production 2 2,200,000 4,400,000
3 Finance 1 2,200,000 2,200,000
4 Production office 1 2,500,000 2,500,000
5 Manufacturing workshops 2 1,200,000 2,400,000
6 Customer service management 3 1,200,000 3,600,000
7 Credit manager 1 2,000,000 2,000,000
8 Inventory manager 2 2,500,000 5,000,000
9 Display and promotion manager 2 1,500,000 3,000,000
10 Designer 1 3,000,000 3,000,000
TOTAL EXPENDITURE 17 33,100,000

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3.6. Office supplies.
Here we’ll deal with other indirect costs that act as supporters of the whole business in general that
the people whether directly involved (direct labor) or indirectly involved (administration) will use.
Table 13. shows expenditures concerned with all office supplies.

S/N OFFICE SUPPLIES QUANTITY NEEDED ANNUAL COST (TSHS)

1 Cash books 20 50,000
2 Pens & pencils 5 boxes each 45,000
3 Rim papers 5 75,000
4 Printers 2 3,000,000
5 Receipt journal 2 10,000
6 Staples 5 boxes 75,000
7 Printer ink 5 bags 100,000
TOTAL 31 3,355,000

3.7. Activities before operation.

Prior to the normal operation of the proposed business, other activities need our attention for the
business succession, they include;
 Organization of the business.
 Registering of the business.
 Applying for loan to cover up unfinished costs.
 Waiting for the applied loan release.
 Hiring employees for the specific positions.
 Buying machinery equipment, and office supplies/equipment.
 Workshop inspections, for training recruiters.
 Training recruiters.
 Creating prototypes for the proposed product.
Table 14.Gantt chart time period

ACTIVITY ORG WEEKS EXPENSES

1 2-3 4-5 5-8 9-10 11-12 13 14
Business 1,500,000
organizing
Business BRELA AND 1,400,000
registration COSOTA
Loan EQUITY
application BANK
Waiting loan
release
Hiring 2,200,000
employees
Buying ALIBABA 300,000,000
machines &
equipment
Workshop OSHA 1,000,000
inspection
Training DON BOSCO 10,000,000
recruiters CENTER

Creating 20,000,000
prototypes
for plastic

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 tiles
TOTAL 336,100,000

3.8. Indirect operating expenses

This includes all the operating activities within the business;
• Selling and marketing
• Rentals
• Office supplies
• Salaries or indirect labor

Table 15.showing a list of indirect operating expenses

S/N ITEMS AMOUNT

1 Selling and marketing 20,000,000
2 Rentals 12,050,000
3 Office supplies 9,080,000
4 Salaries or indirect labor 42,930,000
TOTAL 84,060,000

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 SECTION FOUR

FINANCIAL STATEMENT ANALYSIS

Finance;
Provides the needed fund that is required to run the business and managing the finance in a
business means seeing to it that the proposed money is effectively ran to.
It includes the following statements;
• Investment plan statement
• Profit and loss statement
• Cash flow statement
• Balance sheet statement

4.1 Investment plan statement

In investment plan statement it includes the funds to be input to the business and it involves
the following;
• Investment in fixed assets
• Pre operating investment
• Direct costs
• Administrative and selling expenditure
• Equity
• Working capital
• Production and product price (sales)
• Receivables

From investment in fixed assets to administrative and selling expenditure the pricing is all
analyzed in the above chapters of this business plan. For equity to receivables the explanation
below analyses them.

4.11 Equity is categorized into;

• Total equity for fixed assets is estimated to be 150,180,000tshs rated from the
corresponding existing total investment fixed assets value that is 125,150,000tshs
• Equity for pre operating investments is estimated to be 63,480,000tshs rom the
corresponding existing cost of operation that is 52,900,000tshs

4.12 Production and product price;

From the initial economic and marketing analysis the selling price of our product ranged
from 6000 to 14,000tshs and the company is estimated to produce 13,000 tiles.
For a year the sales of the product will be as follows;

= (14,000*13,000)365

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 =66,430,000,000tshs

The sales in a year will be estimated to be 66,430,000,000tshs and the projected sales
estimation rate is considered 10% each year for five years.

4.13 Receivables
Since the business is starting the amount of money receivable is 0tshs.

4.2 Profit and loss statement

It includes the following items
• Sales
• Direct operating cost
• Gross profit
• Indirect operating cost
• Operating profit
• Interest
• Profit before tax
• Tax (30%)
• Breakeven point
4.3 Cashflow statement
It includes;
• Cash in flow
• Cash outflow
• Loan payments
• Ending cash balance
4.4. Balance sheet
It includes;
• Current Assets
• Fixed assets
• Current liabilities
• Equity

PLASTILE COMPANY
LTD.xls

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